Principles of Selling
MKT 310
Test #2 Review Sheet
You are responsible for all the information in Chapters 7, 8, 9, 10, 11, 12 & 13 of “Fundamentals of Selling”,
especially the following topics from the text, as well as information from class discussions, lectures, exhibits
(overhead transparencies) and quizzes.
Chapters 7 & 8: Prospecting and Preapproach Planning
Describe in detail the steps of the selling process before the presentation
Understand why prospecting is the “lifeblood” of selling

Prospect – qualified person

Prospecting – Identifies potential customer

Lead – only know name

Sales Prospecting Funnel
All leads and prospects must be considered and filtered through the MAD process before they
become qualified prospects

All salespeople lose X amount of sales and customers per year. This is illustrated in the Leaking
Bucket Customer Concept:
Explain what information is needed to determine if a person is a qualified prospect
Qualified prospect is MAD
M oney to buy?
A uthority to buy?
D esire to buy?
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Describe the most/least effective prospecting methods in various sales situations
Understand the elements of sales call planning (the preapproach)
Determine Sales
Develop/Review

Call Objective
Customer Profile
Develop Customer

Benefits
Develop Sales

Presentation
Always set a SMART call objective
Specific
Measurable
Achievable
Realistic
Timed
Steps in creating the customer benefit plan:
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Step 1:
Select FABs for product discussion
Step 2:
Select FABs for marketing plan discussion
Step 3:
Select FABs for business proposition discussion
Step 4:
Develop suggested purchase order based on first three steps
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Some of the Most popular:

Cold canvas

Endless chain methods

Public exhibitions and demonstrations

Locating centers of influence

Direct mailouts

Telephone and observation
Referrals are used in most prospecting methods

Cold canvassing
Endless chain customer referrals

Orphaned customers
Sales lead clubs

Public exhibitions and demonstrations
Center of influence

Telephone
Networking
Prospecting  Appointment  Planning
40% presentation
20% presentation
40% follow-up
Prospecting Guidelines
3 criteria are:
1. Customize to each prospect
2. Concentrate on high potential customers fruit
3. Call back on no-buys

Always keep knocking on prospect’s and customer’s door to help them
The Prospect Pool: Leads, Orphans, Referrals, Your Customers
The Referral Cycle

The secret is to ask correctly during referral cycle
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
The preapproach contact phase

The presentation

Product delivery contact phase

Service and follow-up contact phase: Customer service
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Don’t Mistreat the Referral!!!

Mistreatment can have a ripple effect

The mistreated referral tells your customer – you may lose both!

Remember to follow the Golden Rule

Once you have sold the referral, and gotten more referrals, ask the new customer to contact the
referring customer on her experience with the salesperson


Now you have two customers giving referrals
This can create an endless chain of referrals quickly filling your prospect pool with only customers and
referrals

Now, no more cold calling
Chapter 8
Strategic Problem Solving involves: strategic needs, creative solutions, and mutually beneficial agreements

Reasons for planning the sales call
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
Builds confidence

Develops atmosphere of goodwill

Reflects professionalism

Generally increases sales
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The Prospect’s 5 Mental Steps in Buying
1.
Attention: the proper approach is important, be quick to determine the need or problem
2. Interest: show you are there to help
3. Desire: using your trial closes, determine if prospect is interested in the benefits
4. Conviction: let the customer see how your product’s FABs will solve her needs or problems
5. Purchase: trial close response(s) give nonverbal signals that indicate belief in the solution
Overview of the Selling Process

Getting the prospect’s attention and interest by having the prospect recognize a need or problem, and
stating a wish to fulfill the need or solve the problem

Uncovering and answering the prospect’s questions and revealing and meeting or overcoming
objections results in more intense desire

Desire is transformed into the conviction that your product can fulfill the prospect’s needs or solve
problems
Chapter 9 & 10: Sales Presentation Methods and The Approach
Describe the sales presentation strategies relative to the three types of selling situations

Salesperson to buyer

Salesperson to buyer group

Sales team to buyer group

Conference selling

Seminar selling
Must select a sales presentation method according to your:
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o
Prior knowledge of the customer
o
Sales call objective
o
Customer benefit plan
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Sales Presentations
Understand the five basic sales presentation methods and where they fit

Memorized Selling (Canned Approach) is good:


Because it:

Ensures the salesperson gives a well-planned presentation

Ensures all of the company’s salespeople discuss the same information

Both aides and lends confidence to the inexperienced salesperson
It is effective when:

Selling time is short, as in door-to-door or telephone selling

The product type is non-technical – such as books, cooking utensils, or cosmetics
Is bad….

Because it:

Presents FABs that may not be important to the buyer

Allows for little prospect participation

Is impractical to use when selling technical products that require prospect input and
discussion

Requires the salesperson to proceed quickly through the sales presentation to the
close, resulting in several closes or requests for the order, which may be interpreted
by the prospect as high pressure selling

Formula Sales Presentation Method
Good to choose…

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Because you:

Are contacting similar prospects in similar situations

Know something about the prospect

Have called on the prospect in the past

Want to ensure all information is presented logically
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
Want to have reasonable amount of buyer-seller interaction

Because it allows for smooth handling of anticipated questions and objections

Examples of product types that work well with this method are:

Consumer goods

Pharmaceutical goods
Bad to choose…


Because you:

Do not know the prospect’s needs

See a need for the prospect to talk more

Have a complex selling situation such as:

Selling a technical product

Selling to a group
Need-Satisfaction (need development  need awareness  need fulfillment
Good…

Because you:

Need a flexible, interactive sales presentation

Need to uncover needs by asking questions

Need the prospect to talk about his needs

Use this method the first time you call on a prospect

Should you have to come back a second time, you would use the formula sales
presentation method

Examples of product types that work well with this method are:

Financial services

Systems

High priced goods/services such as vehicles, real estate, computer systems,
industrial equipment
Bad….

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Because you:

Need more control over the conversation

Feel should not ask too many questions

Are new to the sales profession
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Why choose the Problem-Solution sales presentation method?

Because you:

Are selling highly complex or technical products

Are required to make several sales calls to develop a detailed in-depth analysis of a
prospect’s needs

Need a flexible, customized presentation based on findings
6 Steps Involved
Step 1 - Convincing the prospect to allow the salesperson to conduct the analysis
Step 2 - Making the actual analysis
Step 3 - Agreeing on the problems and determining that the buyer wants to solve the problem
Step 4 - Preparing the proposal for a solution to the prospect’s needs
Step 5 - Preparing the sales presentation based on the analysis and proposal
Step 6 - Making the sales presentation
Group Presentations
o
The larger the group, the more structured your presenentation

Give a proper introduction

Establish credibility – give a brief company history

Provide an account list

State your competitive advantages

Give quality assurances and qualifications in the beginning

Cater to the groups behavioral style

Get people involved

The proposal

No prices

Summarize benefits
Negotiating styles
o
Cooperative
o
Competitive
o
Attitudinal
o
Organizational
o
Personal

The experienced sales person will negotiate in a way that achieves satisfaction for both
parties
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
Phases of Negotiation
o
Planning – know how your company compares with the competition.
o
Meeting – build a relationship that eases the negotiation process.
o
Studying – look for benefits you can provide.
o
Proposing – what you do in the presentation sets the stage for what may come later.
Chapter 10
the Approach:
the time from when the salesperson first sees the buyer to the beginning of the discussion of the
product.

Is the 1st step in the sales presentation

Is the 3rd step in the selling process
The salesperson:

Meets

Greets

Rapport Builds

Goes through the approach

Discusses the product

Discusses the marketing plan

Discusses the business proposition

Closes – asks for the order
Explain why the approach is one of the most critical steps in the selling process
Understand the three primary approach techniques and the components of each
3 Approach Categories
1. Opening with a Statement
2. Opening with a Demonstration
3. Opening with a Question (or questions)
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Opening with Statement
Introductory approach: most common, but least powerful to capture attention
Complimentary approach: opens with a compliment that is sincere and thus effective
Referral approach: using a 3rd party’s name as a reference to approach the buyer
Premium approach: offering the prospect something as an inducement to buy
Demonstration openings
Product approach: placing the product on the counter or in the prospect’s hands (say nothing)
Showmanship approach: doing something unusual to catch prospect’s attention and interest
Opening with Questions
(the most common)
Customer benefit approach: ask a question that implies the product will benefit the prospect
Curiosity: asking a question or doing something to make the prospect curious
Opinion: showing the prospect’s opinion is valued
Shock: use a question designed to make the prospect think seriously about the product
Describe the SPIN technique and understand why this method is so unique
Situation
Problem
Implication
Need payoff
*the product is not mentioned
Define and differentiate the four types of questions
1. Direct
2. Nondirective
3. Rephrasing
4. Redirect questions
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Direct
o
o
Can be answered with a few words such as:

“Mr. Jones, is reducing manufacturing costs important to you?”

“What kind?”

“How many?”
Never phrase as a direct negative or a question that can cut you off

o
Example: “May I help you?”
Limitations

Doesn’t really tell you much

There is little feedback information
The Nondirective (Or Open-Ended) Question
o
o
Begins with who, what, where, when, how, or why

“Who will use this product?”

“What features are you looking for in a product like this?”
Its purpose is to obtain unknown or additional information
The Rephrasing Question

Is useful if you are unclear and need to clarify the meaning of something said
o
“Are you saying that price is the most important thing you are interested in?”
o
“Then what you are saying is, if I can improve the delivery time, you would be
interested in buying?”
The Redirect Question

Used to change the direction of the conversation – often from a negative to a positive

Imagine you walk into a prospect’s office, introduce yourself, and get this response:
o
“I’m sorry, but there is no use in talking. We are satisfied with our present suppliers.
Thanks for coming by.”

A redirect question would be:
o
“Wouldn’t you agree that you continually need to find new ways to increase your
company’s sales?”
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3 Rules for Using Questions
1. Use only questions that you can anticipate the answer to or that will not lead you into a situation from
which you cannot escape
2. Pause or wait after submitting a question
3. Listen and let them finish completely
Chapter 11: Elements of a Great Sales Presentation
Define the three essential steps within the presentation
1. Fully discuss the features, advantages, and benefits of your product
2. Present your marketing plan
a. How to resell (for reseller)
b. How to use (for consumer and industrial user)
3. Explain your business proposition
a. What’s in it for your customer?
Explain in detail the six elements of the sales presentation mix
Describe the six types of suggestions used during persuasion
Explain the types of proof statements used to build believability

Past sales help predict the future

The guarantee

Testimonials

Company proof results

Independent research results
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Restatement of the benefit before proving it
o
Proof source and relevant facts or figures about the product
o
Expansion of the benefit
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Dramatization
Dramatics: refers to talking or presenting the product in a striking, showy, or extravagant manner
o
Dramatics should be incorporated only when you are 100 percent sure they will work effectively
o
One of the best methods of developing ideas for dramatizations is to watch television
commercials
o
Dramatic presentations set you apart from the many salespeople that buyers see each day

Improves the chances of your success
A successful demonstration

Lets the prospect do something simple

Lets the prospect work an important feature

Lets the prospect do something routine or frequently repeated

Has the prospect answer questions throughout the demonstration (feedback)
7 Point Checklist for Demos
Understand the most important times when the trial close should be used
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Chapter 12: Welcome Your Prospect’s Objections
Describe the basic points to consider in meeting objections

Accept objections as a challenge

Plan for objections

Anticipate and forestall

Handle objections as they arise – postponement may cause a negative mental picture or reaction

Be positive

Listen – hear them out

Understand objections

Request for information

A condition (negotiation can overcome this)

Major or minor?

Practical or psychological?
Understand the six major categories of objections
Explain the successful techniques used for meeting and overcoming objections
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When is it time to use a trial close?

After making a strong selling point in the presentation

After the presentation but before the close

After answering an objection

Immediately before you move to close the sale
What does the trial close allow you to determine?

Whether the prospect likes your product’s FAB – the strong selling point

Whether you have successfully answered the objection

Whether any objections remain

Whether the prospect is ready for you to close the sale
Use the trial close after answering an objection to see if you have answered the objection!
Identify what you should do after meeting the objection
Chapter 13: Closing Begins the Relationship
Understand what makes a good closer
A good closer:
Asks for the order and then remains quiet
Gets the order and moves on!
Salespeople may fail to close because:

They are not confident in their abilities to close

They determine that the prospect does not need the quantity or type of merchandise or that the
prospect should not buy

They may not have worked hard enough to develop a customer profile and customer benefit
plan
Describe the twelve keys to a successful closing
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Explain what the more commonly used closing techniques are
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
Alternative-choice close

Assumptive close

Compliment close

Summary of benefits

Continuous Yes

Minor-points

T-Account

Standing-room only

Probability

Negotiation

Technology
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Different closing techniques work best for certain situations

Customer is indecisive

Customer is an expert or egotistical

Customer is hostile

Customer is a friend

Customer has predetermined beliefs

Customer is greedy, wants a deal
Closing begins the relationship
Which closing technique should I use? Determined by…

Determine your approach

Create your presentation, then..

Determine how best to close
Understand the most common mistakes that prevent successful sales calls
Attempting to close too early – use trial closes!
Not meeting prospect’s objections
Not correctly identifying the prospect’s style
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